Utility of real-time decision-making in commercial data stream mining domains

Abstract

The objective is to measure utility of real-time commercial decision making. It is important due to a higher possibility of mistakes in real-time decisions, problems with recording actual occurrences, and significant costs associated with predictions produced by algorithms. The first contribution is to use overall utility and represent individual utility with a monetary value instead of a prediction. The second is to calculate the benefit from predictions using the utility-based decision threshold. The third is to incorporate cost of predictions. For experiments, overall utility is used to evaluate communal and spike detection, and their adaptive versions. The overall utility results show th..